Nepra Approves Rs4.92 per Unit Extra Charge for February Electricity Usage


Islamabad: Consumers are set to face an additional charge of Rs4.92 per unit in the upcoming month for electricity consumed in February, as approved by the National Electric Power Regulatory Authority (Nepra). This hike, categorized as additional fuel cost adjustment (FCA), will impact consumers across all ex-Wapda distribution companies (Discos), resulting in a net financial impact of approximately Rs45 billion.

Nepra’s notification, issued on Monday, outlines that the net tariff increase due to the FCA will amount to about Rs7.51 per unit, partially spilling over to the upcoming quarterly tariff adjustment (QTA). However, this adjustment excludes Electric Vehicle Charging Stations (EVCS) and lifeline consumers.

The Central Power Purchasing Agency (CPPA), representing Discos, had initially requested an additional FCA of Rs4.99 per unit for electricity consumed in February. This request stemmed from the actual fuel cost of Rs9.42 per unit, significantly higher than the reference fuel cost of Rs4.43 per unit set for January.

Despite minor adjustments, Nepra settled on an additional FCA of Rs4.92 per unit, slightly lower than the CPPA’s demand. This discrepancy raises concerns about accurate fuel price predictions within the power sector bureaucracy.

Furthermore, Nepra expressed unease over declining electricity demand, leading to higher quarterly adjustments and subsequently increased tariffs. The regulator urged the CPPA and Ministry of Energy to analyze the impact of commercial-based load-shedding cessation and propose solutions to improve demand.

Additionally, Nepra highlighted the need to evaluate reducing capacity charges within legal frameworks and optimize power generation methods for cost efficiency, citing instances of wind power curtailment and inefficient thermal power station operations.

Story by Khaleeq Kiani

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